19 February 2019 02:50:56 PM

MTN sells 100% of MTN Cyprus to Monaco Telecom

- 2018-07-16 02:34:54 PM

MTN Dubai Limited, a wholly owned subsidiary of MTN Group, has entered into an agreement in which it has sold 100% of MTN Cyprus to Monaco Telecom S.A. (“Monaco Telecom”) (the “Transaction”) as part of an ongoing review of its portfolio. The net sale proceeds of €260 million (approximately R4,1 billion) will be paid upfront in cash. The Transaction values MTN Cyprus at approximately 8x reported 2017 EBITDA.

In addition, MTN has agreed to allow Monaco Telecom to use the MTN brand in Cyprus for up to three years in return for a commercial fee. MTN Cyprus is MTN’s only operating business in the European Union, and was acquired as part of MTN Group’s acquisition of telecoms holding company Investcom LLC in 2006. It falls outside the group’s core footprint of Africa and the Middle East. The Transaction, which is subject to various closing adjustments, allows MTN to realise an attractive valuation for the asset.

MTN expects the Transaction, which is not subject to any completion conditions, to close within the third quarter of 2018.

The accounting effects of the Transaction will be communicated with the 2018 interim results that will be released on 8 August 2018.

The Transaction does not classify as a categorised transaction as per the JSE Listings Requirements.

Exchange rates as at 11/7/2018 translated at R15.79: €1. Transaction amounts agreed in euros so rand amounts subject to forex movements.